introduction to social entrepreneurshi p by – rahul jain

Introduction to Social EntrepreneurshipBY – RAHUL JAIN

Overview Introduction

Fad or Paradigm Shift

New Generational Values

A Model for Social Entrepreneurship and Leadership Development

Role of Education in Developing the Social Entrepreneurial Leaders

Implications and Discussion

Challenge: Access to Clean Water 1.2 billion people are drinking unsafe water

Problem: transport (retrieval to consumption)

Seeding innovation in the water sector

Acumen Fund, IDEO w/backing from Gates Foundation

Social Entrepreneurship Defined

A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change….rather than bringing a concept to market to address a consumer problem, social entrepreneurs attempt to bring a concept to market to address a public problem.

(Alex Nicholls, Oxford University’s Skoll Centre)

Social entrepreneurship takes many forms, but at it’s core is characterized by a leaders’ sense of social consciousness and a desire to make a positive impact on society

…adapted from an ancient Chinese proverb

Philanthropy/Charity

“Give a man a fish and you feed him for a day…”

The NGO/Government Model“…teach a man to fish and you feed him for a lifetime”

Social Entrepreneurship

“Provide him access to capital to create a sustainable fishing business at a fair rate of return and change the world”

Challenges Understanding of Complex Problems(poverty, access to clean water, healthcare, environmental pollution,sustainability in all its forms)

Taking a A Different Approach to Business

◦ Collaborative effort◦ Triple Bottom Line Thinking◦ Leadership Reframed

Why a “new” generation of Leaders?What do our students care about?

What inspires this generation?

…the anecdotal evidence

A New Generation of Business Leaders

“socially aware, globally engaged…”-

--Professor Dave GershonNational Institute for Pharmaco-Economics

and Healthcare Policy Social Venture Incubator

IBM Global Student Study 2010

Three most important ‘external’ forces over the next three years

◦ Globalization◦ Environment◦ Sustainability

Source: IBM Global Student Study 2010, IBM Global CEO Study 2010

Representative Comments

“I’ll consider economic performance and societal/environmental performance as two parts of the same process of wealth creation. We need to rethink what wealth means” (student, France)

“Resources are depleting heavily. Govenrments will now take things into their hands and keep their resources in their country so they will last longer.” (student, India)

“Natural resources..are becoming more scarce….there will be a need for collaboration among nations to find solutions to these problems, which means that organizations will be more interconnected.” (student, USA)

“Global thinking is a must for leaders, but it must be associated with a focus on sustainability and integrity, otherwise businesses will be short-lived.” (student, Japan)

Less than 4 in 10 students believe their education has prepared them well to address the new realities of a shared planet

Insights from the IBM Study

To meet future challenges….◦ Rethink Business Value◦ Create Stronger Global Connections◦ Inspire Creative Leadership

Source: IBM Global Student Study 2010, IBM Global CEO Study 2010

What’s Needed? “…Collaborative, action-oriented, real-world problem-solving was by far the best strategy to advance knowledge and learning.”

(---reflecting on W. R. Harper’s beliefs about higher education in Benson, et. al. (2005): “Integrating a commitment to the public good into the institutional fabric.”

Developing Social Entrepreneurs

Teaching Business Valuation from a “Triple Bottom Line” perspective:

3 Ps + 1

◦ People◦ Planet◦ Profit

AND……..Partnerships

(cont.)Who are most likely to become Social Entrepreneurs?

Innovators –(Psychological attribute)

Achievement oriented –Psych

Independent –Psych

Inner-directed --Psych

Tolerant of risk --Psych

Tolerant of ambiguity --Psych

Combining Risk Aversion and Innovativeness to Trigger Entrepreneurship

High innovativeness and low risk aversion = Entrepreneur

Non-innovative and low risk aversion = Gambler

High innovativeness and high risk aversion = Dreamer

Social Entrepreneurship and Leadership characteristics

Social Entrepreneur (SE) recognizes a social problem and all its complexity and binds the problem with a vision that has the potential to reshape the situation directly and change public attitudes that perpetuated the original problem

SE holds significant personal credibility (referent power) which allows them to tap critical resources and actually build the necessary network of participating persons and organizations

SE generates followers’ commitment to a project by framing the project in term of important social values, rather than purely economic terms. This results in a sense of collective purpose between and among the social entrepreneur and those who join the effort.

Common ‘Myths’ about Social and Commercial Entrepreneurship

SEs are anti-business – rather collaboration for alignment and mutual benefit

Difference between SE and Commercial Entrepreneurship (CE) is ‘GREED’ – many SEs are also CEs.

SEs run non-profits – social entrepreneurship process can occur in any sector and with any legal status

(continued on next slide)

(Continued ) - Common ‘Myths’

SEs are born, not made – people can grow and learn to be comfortable with risk and ambiguity, as well as have their level of community awareness elevated. Ethical maturity, following Kolb’s theory of moral development, can be instrumental in SE creation.

SEs are misfits – They value different goals, but certainly are anything but

SEs usually fail – while slightly less than 50% of CEs actually fail, an even smaller percentage of SEs actually fail (<30%)[Cordes, et.al., 2001].

SEs love risk – there is little empirical evidence for this claim, rather all successful entrepreneurs utilize “well thought out risk taking. By thinking, analyzing, and planning well, they mitigate risk and function under calculated risk paradigm.

Social Entrepreneurship Today

Two excellent, creative examples of Social Entrepreneurship in action can be found at the following web sites: http://www.path.org/ and http://www.DonorsChoose.org/ .

Both can be used by students to gain a “feel” of Social Entrepreneurship in the real world.

mcamarata@semo.edu or mcamarata@aol.com for more information!

A Model for Social Entrepreneurs

Source: Alex Nichols, Oxford University,Skoll Centre

Leadership Qualities (LPI)

Leadership Practices◦ Challenge the Process◦ Inspire Shared Vision◦ Model the Way◦ Enable Others to Act◦ Encourage the Heart

Source: Kouses & Posner, The Leadership Challenge

Leadership from a Global Perspective: GELI

Visioning Empowering Energizing Designing and Aligning Rewarding and Feedback Team Building

Outside Orientation Global Mindset Tenacity Emotional Intelligence Life Balance Resilience to Stress

Source: DeVries, Global Executive Leadership Inventory

Where Can These Behaviors Be Developed?

Education Experience Practice

◦ All focused on ◦ People◦ Planet◦ Profit◦ Partnership

Leveraging Education Experiential Learning: Service Learning and Internships

An approach to Mission, Purpose and Making Education Relevant

A Strategy for Community Engagement

Skoll Foundation Vision: live in a sustainable world of peace and prosperity.

Mission: drives large-scale change by investing in, connecting, and celebrating social entrepreneurs and other innovators dedicated to solving the world’s most pressing problems.

Example: Funding Root Capital and the Starbucks connection

http://www.skollfoundation.org/nytimes-fixes-filling-the-gap-between-farm-an

d-fair-trade/#more-3679

Business: The VC Community

Good Capital QuickTime™ and a decompressor

are needed to see this picture.

investment firm that increases the flow of capital to innovative ventures creating market-based solutions to inequality and poverty….invests in the most promising social enterprises and give them the tools and guidance they need to succeed. In addition,Good Capital actively leads the development of the emerging social capital market. …shares a deep commitment to the creation of a new,

I informed, and passionate world of investing that strategically moves more capital to good.

Alliance Relationship

Observations and Reflections

Formation of abstract Concepts and

Generalizations cultivatesCreativity & Innovation

Experiential Learning

Cycle

Testing implications of concepts in new

situations

The Experiential Learning ModelApplied to Strategic Alliances in Social Ventures

Implications and Discussion

Identifying opportunities for innovation that address social concerns

Enabling a generation to gain experience with social enterprises

Reframing how we define stakeholder interest and what it takes to maximize shareholder value

Incremental Change versus Game-Changing--Need this be an either/or proposition?

Questions?